VIDEO: John Kennedy’s “Sugar High” Evisceration Of Janet Yellen

Back in the fall, billionaire investor Stanley Druckenmiller spoke at an investor’s conference in unflattering terms about Team Biden’s highly-unimpressive Treasury Secretary Janet Yellen. Druckenmiller said Yellen was guilty of one of the most egregious blunders in American history…

Janet Yellen is behind the “biggest blunder” in the history of America’s Treasury, according to billionaire hedge funder Stanley Druckenmiller.

Druckenmiller—whose decades-long career has seen him build a net worth of more than $6 billion—slammed the Treasury Secretary during an on-stage discussion at last week’s Robin Hood Investors Conference, arguing that Yellen had failed to take advantage of the ultra-low interest rates era.

“When rates were practically zero, every Tom, Dick and Harry in the U.S. refinanced their mortgage… corporations extended [their debt],” he said. “Unfortunately, we had one entity that did not: the U.S. Treasury.”

In 2020, at the height of the COVID-19 pandemic, central banks all over the world cut interest rates as lockdowns and health concerns stifled spending. The U.S. Federal Reserve eased monetary policy so that rates fell to near zero.

Thanks to a post-pandemic surge in consumer demand, labor and production shortages, and Russia’s invasion of Ukraine sparking a global energy crisis, inflation spiraled to its highest level in four decades last year. The Fed, then, has been much more hawkish over the past two years as it battles to tame surging prices, carrying out a series of rate hikes that has brought interest rates to a 22-year high.

Druckenmiller—who was chief investment officer at George Soros’s wealth management firm for more than a decade before setting up Duquesne Capital Management in the 1980s—argued last week that Yellen should have issued more long-dated Treasury bonds when debt was cheap.

“Janet Yellen, I guess because political myopia or whatever, was issuing 2-years at 15 basis points when she could have issued 10-years at 70 basis points or 30-years at 180 basis points,” he said. “I literally think if you go back to Alexander Hamilton, it is the biggest blunder in the history of the Treasury. I have no idea why she has not been called out on this. She has no right to still be in that job.”

Our Treasury debt should have been locked in at exceptionally low rates, and a great deal of it wasn’t.

Druckenmiller created a major stir with his criticism of Yellen. He wasn’t alone. But the financial press, which is just as partisan and corrupt as the rest of the legacy corporate media, simply laid down rather than picking up on Druckenmiller’s criticism and castigating her for the poor management this represented.

Eight months later, though, Sen. John Kennedy picked up on the criticism when Yellen came before an appropriation hearing. In not so many words, he let her have it about the failure to get the best rate for the taxpayer on financing the federal deficit…

Kudos to Kennedy for making this quite simple.

And he’s correct, too, because paying out higher interest rates than you have to on that debt is a means of injecting cash into the economy that nobody will notice right away.

It’s also a means of buying off the institutional investors who have lined up to throw money at Biden’s re-election campaign. At your expense, of course.

Yellen’s response, that it saves more down the road borrowing at a high short term rate, is a load of crap. Borrowing short-term debt at a higher rate saves costs only if you don’t end up borrowing more money. The federal deficit is $1.6 trillion now. It’s impossible, politically, to balance the budget immediately given current circumstances so we know the borrowing won’t stop.

And it’s utterly absurd for her to claim that Treasury isn’t timing the market. They’ve been timing the market consistently for years. They’re just terrible at doing it.

Unless, of course, Janet Yellen isn’t trying to get the taxpayer the best deal but instead is trying to manipulate the economy to get Biden re-elected and therefore keep her job.

Kennedy calls her out for that. Good for him. This needed to be exposed.